Expats obtaining a Dutch mortgage

Getting a Dutch mortgage

When you apply for a mortgage (hypotheek) in the Netherlands, you’re bound to the same conditions as Dutch natives. You have to work and live here and the lender will need information about your income and debts, the property value, your employment agreement, your marital status and more.

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Are there any special requirements for expats?

As an expat, you might have to satisfy a few extra requirements to obtain a mortgage in the Netherlands. Like anyone else you need to have a citizen service number (BSN). You’ll receive one when registering at the municipality, e.g. here in Amsterdam. When you’re not a EU/EEA (European Economic Area) citizen, a residence permit (verblijfsvergunning) is mandatory. Your employer can usually help you obtain these items.

Some banks or lenders may have extra requirements for expatriate borrowers. For instance, they may require that you’ve lived in the Netherlands for at least six months. They could also require that you have an income in euros or an EU nationality. There may be additional requirements if you’re new to the country or employer.

You can calculate your maximum mortgage here

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Mortgages for expats possible under certain conditions

The Central Bureau of Statistics (CBS) recently reported that the number of international knowledge workers in the Netherlands has increased by 73% in 13 years. 4.2% of the workforce now consists of expats. More and more expats see buying a house as a good investment. Provided they meet a number of conditions, obtaining a mortgage is no problem.

Mortgage for expats
There are no formal restrictions for an expat to buy a home in the Netherlands. But if this is accompanied by a mortgage, it is more complicated for the expat. In addition, there are additional conditions. For example, the country of origin is important to the mortgage provider: a resident of the European Union gets a mortgage more easily than people outside the European Union. People from outside the European Union must have a residence permit for a non-temporary purpose. There must also be a permanent employment contract. In case of temporary employment, the customer also needs a letter of intent from his employer. Some providers do give mortgages to expats with their own business, but they must then be able to prove their net income in 3 years. We can already give a good assessment based on the annual accounts. The company must also be registered with a Dutch Chamber of Commerce.

Critical of loan amount
There is also a critical look at the amount to be borrowed in relation to the value of the home. Mortgage providers also want certainty that the expat will stay in the Netherlands. That is why they require that the expat has been living and working here for some time, usually at least 6 months.

Walking the Right Way
If you want to buy a house in the Netherlands as an expat, this is certainly possible, but not easy. That is why it is important to have a mortgage advisor on your side who knows the right route. Contact us and we will be happy to help you with the purchase of your home in the Netherlands.

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What if I’m self-employed or don’t have a permanent employment contract?

Getting a mortgage can be difficult for self-employed expats or expats who don’t have a permanent employment contract – but it’s not impossible.

If you’re self-employed, you’ll need to show at least two or three years of income history. The longer you’ve been self-employed, the higher your chance of getting a mortgage will be.

If you don’t have a permanent employment contract, you’ll need a letter from your employer stating that your contract will be renewed if the situation stays the same.

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What if I’m living or working abroad?

Taking out a mortgage from a Dutch mortgage provider requires that you live and work in The Netherlands. Off course you can be seconded abroad every now and then, but your main base and employer has to be Dutch.

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Can I buy a house to let?

Unfortunately that is not possible with a ‘normal’ mortgage. With these mortgages it’s not allowed to rent out your home. They are strictly meant for self-occupancy. Only in special circumstances like a long lasting vacancy or a transitional period you can rent it out for a limited period of time and with consent of the mortgage provider. There are, however, special buy-to-let mortgages. But the interest rate is always fairly higher and you have invest some money of your own, up to 30-50%.

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Are there any special expat mortgages?

If you mean a mortgage with special or favourable conditions for expats, the answer is no. A special expat mortgage doesn’t exist. You get the same Dutch mortgage, just like your fellow (Dutch) countryman.

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How much can I finance and what costs will I pay upfront?

In the Netherlands, you can finance up to 100% of the market value of your house. So if the value is €200,000, you can get a mortgage for as much as €200,000. It’s just as simple as that.

However, keep in mind that you will have to bring some of your own money to the table as there are several costs involved in buying a property that can’t be financed (although we can sometimes help with this). These are some of the costs you should expect to pay out of pocket:

  • A transfer tax that costs 2% of the sale price of the home
  • The fee for the appraisal/valuation report, which is required if you’re getting a mortgage
  • Arrangement fee for the mortgage
  • The fee for the notary
  • The 10% deposit or bank guarantee

As a rule of thumb, the costs of buying a house will be roughly 4% to 6% of the home price.
You can read more about these costs here
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How can Expat Mortgage Platform help me get a mortgage?

As you can see, there are quite a few requirements for obtaining a mortgage in the Netherlands. But experts are here to help you find the best possible mortgage for your situation.

We know our way in the labyrinth of lenders, with all their peculiar habits and exotic demands. And we’re not afraid to show them our teeth if needed. The only thing that matters to us is helping you buy a home. Contact us when you’re ready to get started.

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Do I need to put down a deposit?

All sellers will ask for a financial guarantee in the form of a 10% deposit. You must deposit these funds in cash into a notary’s escrow account. If you don’t have the cash, you can instead provide a bank guarantee, which is a note that guarantees that the bank or lender will pay the deposit if you break the contract.

If you decide to cancel the buying agreement without a valid reason – meaning one that was agreed upon in your preliminary purchase agreement – the seller will get to keep the deposit.

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How much can I finance and what costs will I pay upfront?

In the Netherlands, you can finance up to 100% of the market value of your house. That means that some costs involved in buying the house must be paid out-of-pocket. You can read more about financing here.

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How does the home buying transaction close?

When everything is agreed upon and the contract is final, it’s time to close the deal.

First, you’ll want to inspect your new property to make sure it’s in the condition you expected it to be in. Then, both parties will go to a civil law notary to settle the purchase. The notary will legally transfer the ownership of the property to you and pay the seller.

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How can Expat Mortgage Platform help me buy a home?

Expat Mortgage Platform can help in a variety of ways:

  • We can help you find the best mortgage for you
  • We can connect you to the best real estate agents
  • We can help you find a good appraiser
  • We can find you a helpful and inexpensive notary
  • We can find a translator for you

Our role is to keep an eye on the whole home buying process; we want to help in any way we can. If you want to learn more about our services, please contact us.

Best Mortgage advice for Expats

The Expat Mortgage Platform experts will help you find the perfect Mortgage against the best possible rate! Calculate your Maximum Expat Mortgage online or make a free appointment with one of our mortgage advisors. Welcome!

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